As a diligent business owner, it’s important to stay current with any regulatory changes affecting the business. An important law to be aware of is the Work Injury Compensation Act (WICA). It regulates claims and compensation for work-related injuries. This blog will look at the key changes that took effect on April 1, 2021, and how they affect small businesses.
- Timely data transmission:
New WICA requirements require insurers to promptly submit data to the Ministry of Manpower (MOM) database before policy commencement. This ensures a seamless and accurate exchange of information between the insurance company and MOM.
- Increased salary threshold:
The salary threshold for non-manual workers has been increased from S$2,100 to S$2,600. Employers are strongly encouraged to include these workers in Work Injury Compensation (WIC) coverage to reduce the risk of incurring compensation costs.
- Extensive coverage under WICA:
WICA includes all local and foreign employees under employment contracts, regardless of salary, role, age, or nationality. However, self-employed persons, independent contractors, domestic workers, and certain uniformed personnel are exempt from work injury compensation act coverage.
- Eligibility for claims:
Employees are entitled to compensation for work-related injuries, occupational diseases, or biological/chemical agent exposure. A claim can also be made if the employee is no longer employed by the company or the work ID card has been revoked. If an employee dies, surviving dependents can make a claim.
To help small businesses meet their obligations and provide adequate compensation for workers’ injuries, they must familiarize themselves with the latest Workers’ Compensation Act (WICA) changes.
As of August 31, 2022, the Temporary Bridging Loan (TBL) has ended. However, SMEs can still benefit from another government-assisted loan called the SME Working Capital Loan (WCL). Until March 31, 2022, SMEs can tap into the WCL, which offers a maximum loan of $300,000. Furthermore, from October 1, 2022, the maximum loan amount will be raised to $500,000.
Considering the SME WCL, knowing the latest interest rates offered by Participating Financial Institutions is essential. These temporary bridging loan rates can vary, so staying informed will help one make an informed decision.
Calculating the loan requirements is a crucial step. Determine the amount one needs to borrow and the repayment duration that suits the business. Additionally, consider eligibility factors such as sales turnover and years of incorporation.
When it comes to business financing, it’s important to explore various options available in the market. Besides traditional banks, alternative lenders offer different credit criteria, interest rates, and processing fees. While most business loans are marketed as unsecured, personal guarantees by directors/shareholders may still be required.
